Budget Speech 2023Expenditure Proposals |
Madam Speaker, the 2023 Budget proposals reflect this government’s priorities by making targeted allocations for specific programmes.
Over the medium-term, more than 60 per cent of non-interest expenditure goes to the social wage, while spending on buildings and other fixed structures – such as roads and dams – will increase from R62 billion in current year to R104.2 billion in 2025/26.
We are increasing allocations to key frontline departments above existing baselines, moving toward a change in the composition of spending from consumption to investment, maintaining a large social security safety net, while striving for sustainable levels of debt.
This is not an austerity budget. It is a budget that makes tough trade-offs in the interests of the country’s short and long term prosperity.
The 2023 Budget allocates additional funding totalling R227 billion over the medium term. There are several priorities that will be funded through this additional money.
R66 billion is allocated to Social Development over the medium term, with R36 billion to fund the extension of the COVID-19 social relief of distress grant until 31 March 2024.
R30 billion will be used for inflation-linked increases for other social grants. As a result:
| • | The old age and disability grants increase by R90 on 1 April 2023 and a further R10 on 1 October 2023. The result is a total increase to R2090. |
| • | The child support grant rises from R480 to R510 on 1 October 2023, while the foster care grant increases from R1070 to R1130 over the same period. |
| • | R23 billion and R22 billion will be allocated to health and basic education , to cover the shortfall in compensation budgets and to improve services. |
| • | R8 billion is allocated for basic services through the local government equitable . |
We have allocated R14 billion over the medium term to fight crime and corruption, with the following specific allocations:
| • | The South African Police Service is allocated R7.8 billion to appoint 5,000 police trainees per year. |
| • | The National Prosecuting Authority receives R1.3 billion to support the implementation of the recommendations of the State Capture Commission and the Financial Action Task Force. |
| • | The Financial Intelligence Centre is allocated an additional R 265.3 million to tackle organised and financial crime. |
| • | The Special Investigating Unit is allocated R100 million to initiate civil litigation in the special tribunal, flowing from proclamations linked to the recommendations of the State Capture Commission. |
| • | The Department of Defence is allocated an additional R3.1 billion to enhance security on South Africa’s borders. |
Finally, an injection into the budget of the SARS is proposed. In addition to a direct allocation for capital and ICT projects, provisional allocations are set aside to improve revenue raising capabilities of SARS.
I am also tabling the second adjustments appropriation bill for the 2022/23 fiscal year.
The Bill proposes an allocation of R45.6 billion to provide for the carry-through costs of the 2022/23 public-service wage increase.
R1 billion is allocated to South African Airways to assist the carrier with the business rescue process. The South African Post Office is allocated R2.4 billion.
The allocations for these state-owned companies will be accompanied by strict conditions to ensure sustainability, accountability and transparency. If the conditions are not met, the money will not flow.